When it's not a net gain

Mar 7 2006 By Evening Gazette

Trading over the Internet has really started to take off.

It was recently reported that online retailers enjoyed a bumper Christmas, with sales rising by around 50pc on the previous year.

Shoppers spent nearly £5bn on Internet goods in the ten weeks to Christmas as they shunned the high street in favour of ordering from the comfort of their homes.

But one aspect of doing business over the web suffered a blow this week. Firms that distribute cut-price CDs and DVDs for major chain stores from Jersey to avoid VAT are to have their licences stopped in a year's time.

I must admit I have used Tesco's Jersey website, as prices are generally lower and you also do not pay postage.

From Tesco's main site, as well as DVDs and CDs being more expensive, there is a delivery charge of £1.29 plus 35p for each item.

These days everyone seems to assume the best place to bag a bargain is on the Internet.

But not necessarily, as I found out recently.

I wanted to buy the latest Wallace and Gromit adventure - the Curse of the Were-Rabbit on DVD. On Tesco Jersey it was £14.84 compared to a recommended retail price of £22.99 - a saving of 35pc.

Luckily I did not buy it, as when I popped into my local branch of Asda to pick up some groceries a few days later I found it on sale for the cheaper price of £11.97.